“Nvidia’s Valuation Surpasses Amazon’s in Intraday Trading, Inches Closer to No. 4 Spot”

Nvidia, the leading chipmaker in the market for artificial intelligence hardware, is steadily climbing the ranks of top U.S. companies by market capitalization. In fact, it recently surpassed Amazon in intraday trading, inching closer to claiming the No. 4 spot. While Nvidia’s valuation fell slightly short of Amazon’s at the end of the trading day, this milestone highlights the company’s remarkable growth over the past few years.

Just four years ago, Nvidia wasn’t even among the top 20 U.S. companies by market capitalization. However, its valuation has skyrocketed since then, reaching $1.785 trillion at the close of trading on Monday, according to Dow Jones Market Data. At its peak during intraday trading, Nvidia’s valuation even surpassed Amazon’s, reaching $1.843 trillion. This marks a significant achievement for Nvidia, as it hasn’t finished a session worth more than Amazon since April 2002.

Nvidia’s ascent to the top reflects its dominant position in the market for artificial intelligence hardware and the increasing confidence of Wall Street in its sustainability. The company’s continued climb in valuation demonstrates its strong momentum and the growing belief among investors that next year will be a year of growth for Nvidia.

Previously, there were concerns about the sustainability of Nvidia’s strength, with some speculating that the company might face a downturn in 2025 due to customers needing time to “digest” inventory purchased during a period of supply constraints. However, these worries seem to have dissipated as more investors are convinced that next year will bring further growth for Nvidia.

Analysts are also attributing Nvidia’s success to its expansion into other areas of its business beyond graphics processing units (GPUs) used for artificial intelligence applications. The company’s AI enterprise software and networking offerings are gaining more respect and contributing to its overall success.

Nvidia’s stock has experienced a remarkable surge over the past 12 months, gaining nearly 250%, while Amazon’s stock has advanced by almost 80%. This impressive performance has not gone unnoticed, with analysts and investors alike wondering why Nvidia’s stock seems to rise consistently. According to Melius Research analyst Ben Reitzes, the answer is simple: “Things are still good.”

Looking ahead, there is increased optimism about Nvidia’s prospects for the next calendar year. The company’s strong momentum, expanding business segments, and growing confidence from Wall Street indicate that Nvidia’s success is likely to continue.

While Nvidia may not have overtaken Amazon in terms of valuation just yet, its rapid growth and dominance in the market for artificial intelligence hardware position it as a formidable competitor. As the company inches closer to the No. 4 spot, it is clear that Nvidia’s influence and impact on the technology industry are only set to grow.